FEMA Penalty & Compounding Calculator
Estimate the maximum penalty under Section 13, the Late Submission Fee for delayed FC-GPR / FLA reporting, and an indicative RBI compounding amount — live, and honestly caveated.
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- Built by our CA · CS team
- Rules cited on the page
Enter your figures — the result on the right updates as you type.
Computation breakdown
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Disclaimer: All figures are INDICATIVE estimates only. Section 13 amounts are statutory maximums; the RBI compounding amount is computed by the RBI using its own matrix and is entirely at its discretion. Late Submission Fee (LSF) rates are approximated. This tool does not constitute legal advice — consult a professional before acting.
FEMA penalties — the headline numbers
The Foreign Exchange Management Act, 1999 (FEMA) is a civil law: most breaches are settled through compounding rather than prosecution. Section 13 sets the ceiling for what an adjudicating authority can impose; in practice, delayed reporting is usually regularised via a Late Submission Fee (LSF) or a compounding order for a far smaller amount.
Section 13 vs LSF vs compounding
Three distinct amounts get confused. The Section 13 figure is the statutory maximum — rarely the amount you actually pay. The LSF is a fixed, non-discretionary fee to regularise a late filing. Compounding is a negotiated settlement the RBI computes from its own matrix.
| Quantifiable amount | Up to 3× sum |
| Not quantifiable | Up to ₹2,00,000 |
| Continuing contravention | + ₹5,000 / day |
| Nature | Ceiling only |
| Base fee | ₹7,500 |
| Variable component | 0.025% × amount × yrs |
| Applies to | FC-GPR, FC-TRS, FLA, ODI |
| Nature | Fixed, non-discretionary |
Worked example
A company reports an FDI allotment on FC-GPR 200 days late, with ₹50,00,000 received from a non-resident (quantifiable). Here is how the indicative numbers stack up:
Key terms explained
Compounding
A voluntary settlement under Section 15 of FEMA where the contravener admits the breach and the RBI imposes a monetary sum instead of adjudication. The amount follows the RBI's published compounding matrix and is entirely at the RBI's discretion.
Late Submission Fee (LSF)
A fixed fee introduced to regularise delayed reporting (FC-GPR, FC-TRS, FLA, ODI/APR) without full compounding. Broadly a base amount plus a small percentage of the sum involved, scaled by the delay period.
Quantifiable amount
Where the sum involved in the contravention can be measured (e.g. the FDI received). If quantifiable, the Section 13 ceiling is 3× that sum; if not, the ceiling is a flat ₹2,00,000.
Continuing contravention
A breach that persists day after day (such as a report never filed). Section 13 allows an additional ₹5,000 for every day the contravention continues, on top of the primary penalty.
Questions people ask
Short answers on FEMA Penalty & Compounding. Tap a question to open it.
01What is the penalty for contravening FEMA?
Under section 13, up to three times the sum involved where the amount is quantifiable, or up to ₹2 lakh where it is not, plus a further ₹5,000 a day for a continuing contravention. In practice most cases are settled through compounding at far lower amounts.
02What is compounding under FEMA?
A voluntary process where the contravener admits the contravention and applies to the RBI, which fixes a compounding amount by a published matrix based on the type of contravention, the amount and the period of delay. Once paid, the matter is closed.
03What is the Late Submission Fee?
A simpler alternative for delays in reporting forms such as FC-GPR, FC-TRS, FLA and ECB returns. LSF is computed on a formula linked to the amount involved and the number of years of delay, and paying it regularises the delay without a compounding application.
04How long does compounding take?
The RBI is expected to dispose of a compounding application within 180 days of receipt. The compounding amount must then be paid within 15 days of the order.
05Can compounding be refused?
Yes. Matters involving suspected money laundering, terror financing or a serious threat to the sovereignty of India are not compounded and are referred to the Directorate of Enforcement.
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Disclaimer: This tool gives indicative results for general guidance only and is not professional advice. Please verify with a qualified CA before acting on the numbers.